Multi-Aero Inc.d/b/aAir Choice Oneproposal to provide subsidized Essential Air Service for:Kirksville,MODocket DOT-OST-1997-2515Communications with respect to this document shouldbe sent toShane Storz, CEO, Multi-Aero Inc. d/b/a Air ChoiceOne1436 Perrine Rd, Building E, Farmington, MO 63640Phone: 866.435.9847 Fax: 800.656.4807 Email:shane@airchoiceone.comApril 23, 2010Air Choice One Company OverviewAir Choice Onestarted in 1979 when it was incorporated asMulti-Aero, a family ownedbusiness. They have been serving the traveling public for over 30 years. In 2008, Air Choice Onewas granted an Essential Air Service route from Kirksville, MO to St. Louis, MO. Since then, AirChoice one has continued to earn multiple Midwest EAS routes and we have proven ourselves asa successful carrier with aflight completion record of over 99.5%, with anon time performanceof over 95.0%. Our vibrant and growing company has reciprocal agreements with several otherairlines, interline baggage agreements in the works, and operates with a “green” attitude, as oursingle engine and small piston operations are moreenvironmentally friendly than larger aircraft.Several key points to our success include:◊Low fares◊Community oriented company◊Fleet-additional aircraft◊Marketing-joint marketing promotions to increase traffic in existing EAS city◊Reservations available online through AirChoiceOne.com, by phone, or at the ticket counter◊Online booking engines upgrading to GDS inearly May 2010Implementation of Global Distribution SystemAir Choice One recognizes the impact that a GDS system has on flight operations.As a direct result, we are making a switch to a newoperating system in early May 2010.Our new system, TIKS, has full GDS visibility (Orbitz, Expedia, etc.).Carla Domingues, TIKS Project Manager recently stated that “We are looking at doing a quickturnaround cutover from Skyvantage to TIK Systems beginning of May.” Training will becompleted and the transition is on schedule to happen in early May.This will mean that Air Choice One will now be available for booking through major consumertravel websites, our own online booking source at www.AirChoiceOne.com, on the phone throughour reservation lines, or through travel agents.We have never been more visible to the consumer.For more information, contact Carla Domingues at 407.334.0519 or carla@tiksystems.comAs the current provider of service to IRK, AirChoice One provides a level offamiliarityand trust. Air Choice One started service inJune 2008 and has consistently provided alevel of reliability and low fares that hadpreviously been unseen. Because of ourexperience as IRK’s air service provider, weare aware of the community’s needs andcontinually work to improve our service toreach and exceed their expectations.To continue to serve Kirksville with the bestservice possible, Air Choice One proposesadding a line to Chicago, with servicethrough Burlington, IA.This will connectKirksville with the #2 hub in the U.S., withconnections to over 130 domestic destinationsand over 60 international destinations.Fly VIP with Air Choice OneAnnual Passengers utilizing IRK sinceAir Choice Onetook over as the air carrier.Air Choice One tripled the amount of passengers onits flights from third quarter 2008 to fourthquarter 2009. OurCOMMUNITY RECOGNITIONandOUTSTANDING SERVICEare in partresponsible for such an increase in numbers.Community Recognition and Outstanding Service“I’ve been flying out of Kirksville since Red Wing,and I have found every other airline to becompletely unreliableto the point that I would stop flying on them forfear of cancellation. AirChoice One is completely different. I can count onthem to get me where I need to go, consistentlyand on time. I travel much more now that Air ChoiceOne is here.”-Ruth Bowers, frequent flyer“The City of Kirksville has been very pleased withthe services provided, including the localpassenger operations and the dedication of the pilot[s]... We look forward to our continued goodworking relationship and enjoyment of Air Choice One’s services to our community.”–Mari Macomber, City Manager“I recently took a trip on your line to KirksvilleMO. I just wanted to let you know how much yourstaff helped me... Everyone everywhere was so kind tothis old woman! Thank you.”– Neva Barnhill, 78“Michelle, you and Air Choice One are awesome. Youall took superb care of [my father]. Thankyou from the bottom of my heart. We will definitelyuse Air Choice One for his next trip.”– Rebecca Day, American Airlines employeeOur AircraftCessna CaravanOne of the most popular aircraft in its class withover 1,800 aircraft flying in over 70 countries.Caravans are responsible for over 11 million hoursof flight time worldwide. Air Choice Oneis proud to be operating new Caravans with the latest in avionics technology including dualredundant systems, traffic & terrain avoidance, fully integrated auto pilot, on board weatherand weather radar. The Caravan seats 9, with a generous 110 lb baggage allowance perpassenger, with a large cargo pod to keep the cabinbaggage free.Piper NavajoThis 7 seat multi engine aircraft was made for business class operations, making it an idealairplane for a Kirksville operation. The Navajo iscomfortable and roomy with plenty of extrabaggage lockers throughout the airplane. Currentlyused for the STL-IRK run, the Navajooffers a variety of uses and is well-equipped to handle passengers and baggage with ease. Theadvantage of the Navajo is to reduce empty seats and keep operating costs down.High Frequency Schedule to Maximize Passenger ConvenienceAir Choice One proposes to offer3 daily round tripsout of Kirksville, originating in the morningand ending in late evening. This is in response tothe community’s wants and needs. Either aircraftcan be brought into both our St. Louis hub and ourChicago O’Hare hub, increasing the reach ofthe Kirksville community.The utilization of either a 9 passenger or 7 passenger aircraft will best serve the community whilekeeping operating costs low. This translates intolow faresand efficient use of the aircraft.Our customer focused airline is continually praisedby our passengers. We have received manypositive comments from our travelers who value thetime savings, convenience, reliability, and lowfares that Air Choice One has. Air Choice One recognized the needs of Kirksville and wedelivereda level of service that they have never before experienced.We arecommitted to connecting Kirksvilleto larger airline hubs and we are excited to continueserving the community that knows and trusts Air Choice One to deliver on their promises.To Our GuestsIn ancient times there was a prayer to “The Stranger within our gates”Because this company is a human institution to serve people, and not solely a money-makingorganization, we hope that God will grant you peaceand rest while you are in our care.May this ride be your “second” home. May those youlove be near you in thoughts and dreams.Even though we may not get to know you, we hope that you will be comfortable.The reasons that brought you our way may vary. Whenyou leave, may your journey be safe.We are all travelers. From “birth till death” we travel between the eternities. May these days bepleasant for you, profitable for society, helpful for those you meet, and a joy to those who knowand love you best.Thank you for flying with us!Air Choice One Airlines.We thank you for this opportunity and we sincerelylook forward to continuing to work with you.Respectfully submitted,Shane StorzCEO, Air Choice One1436 Perrine Rd, Building EFarmington, MO 63640Phone: 866.435.9847Email: shane@airchoiceone.comwww.AirChoiceOne.comOptions IndexOption 1Kirksville, MO – Chicago, IL (1RT) – Navajo/CaravanANDKirksville, MO – St. Louis, MO (2RT) – Navajo/CaravanOption 2Kirksville, MO – Chicago, IL (2RT) – Navajo/CaravanANDKirksville, MO - St. Louis, MO (1RT) – Navajo/CaravanOption 3Kirksville, MO – St. Louis, MO (3RT) – NavajoOption 4Kirksville, MO – St. Louis, MO (3RT) – CaravanOption 5Kirksville, MO – Chicago, IL (3RT) – Caravan

## Option 1

Kirksville, MO – Chicago, IL (1RT) – St. Louis, MO (2RT) –Navajo/Caravan

City: BRL-ORD STL

Departures: 613 1,226

Block Hours: 307 981

Revenue Passenger Miles: 467,500 372,500

Available Seat Miles: 134,534,400 1,275,631

Operation Revenues:

Passenger: IRK-BRL-ORD 1,700 psgrs at $ 107.00 $ 181,900.00

IRK-STL 2,500 psgrs at $ 39.99 $ 99,975.00

Other Revenues $ 2,818.75

Total Operating Revenues: $ 284,693.75

Direct Operating Expenses:

Flying Operations 103,017.60

Fuel and Oil 290,960.33

Maintenance 212,473.80

Aircraft/Insurance/Taxes 150,000.00

Total Direct 756,451.73

Total Indirect 311,452.00

Total Operating Expenses 1,067,903.73

Operating Loss 783,209.98

Profit Element

(5% total oper exp) 53,395.19

Compensation Required 836,605.17

Compensation per PAX $ 199.19

Compensation per Departure $ 454.78

Representative Daily Schedule

Departure Arrival Stops

IRK @ 1230 ORD @ 1415 1

ORD @ 1530 IRK @ 1715 1

IRK @ 0630 STL @ 0730 n/s

STL @ 1345 IRK @ 1345 n/s

IRK @ 1500 STL @ 1600 n/s

STL @ 1800 IRK @ 1900 n/s

## Option 2

Kirksville, MO – Chicago, IL (2RT) – St. Louis, MO (1RT) –Navajo/Caravan

City: BRL-ORD STL

Departures: 1,226 613

Block Hours: 613 491

Revenue Passenger Miles: 550,000 253,300

Available Seat Miles: 269,068,800 637,815

Operation Revenues:

Passenger: IRK-BRL-ORD 2,000 psgrs at $ 107.00 $ 214,000.00

IRK-STL 1,700 psgrs at $ 39.99 $ 67,983.00

Other Revenues $ 2,819.83

Total Operating Revenues: $ 284,802.83

Direct Operating Expenses:

Flying Operations 93,819.60

Fuel and Oil 249,394.57

Maintenance 198,676.80

Aircraft/Insurance/Taxes 150,000.00

Total Direct 691,890.97

Total Indirect 283,960.00

Total Operating Expenses 975,850.97

Operating Loss 691,048.14

Profit Element

(5% total oper exp) 48,792.55

Compensation Required 739,840.69

Compensation per PAX $ 199.96

Compensation per Departure $ 402.17

Representative Daily Schedule

Departure Arrival Stops

IRK @ 0600 ORD @ 0745 1

ORD @ 0815 IRK @ 1000 1

IRK @ 1230 ORD @ 1415 1

ORD @ 1530 IRK @ 1715 1

STL @ 1700 IRK @ 1800 n/s

IRK @ 1830 STL @ 1930 n/s

## Option 3

Kirksville, MO – St. Louis, MO (3RT) – Navajo

Departures: 1,840

Block Hours: 1,472

Revenue Passenger Miles: 640,700

Available Seat Miles: 1,913,446

Operation Revenues:

Passenger: IRK-STL 4,300 psgrs at $ 39.99 $ 214,957.00

Other Revenues $ 2,149.57

Total Operating Revenues: $ 217,106.57

Direct Operating Expenses:

Flying Operations 98,602.56

Fuel and Oil 278,662.61

Maintenance 220,752.00

Aircraft/Insurance/Taxes 135,000.00

Total Direct 733,017.17

Total Indirect 281,006.00

Total Operating Expenses 1,014,023.17

Operating Loss 796,916.60

Profit Element

(5% total oper exp) 50,701.16

Compensation Required 847,617.76

Compensation per PAX $ 197.12

Compensation per Departure $ 460.76

Representative Daily Schedule

Departure

IRK @ 0630

STL @ 0900

IRK @ 1100

STL @ 1345

IRK @ 1500

STL @ 1800 Arrival

STL @ 0730

IRK @ 1000

STL @ 1200

IRK @ 1445

STL @ 1600

IRK @ 1900 Stops

n/s

n/s

n/s

n/s

n/s

n/s

## Option 4

Kirksville, MO – St. Louis, MO (3RT) – Caravan

Departures: 1,840

Block Hours: 1,472

Revenue Passenger Miles: 670,500

Available Seat Miles: 2,186,796

Operation Revenues:

Passengers: IRK-STL 4,500 psgrs at $ 49.99 $ 224,955.00

Other Revenues $ 2,249.55

Total Operating Revenues: $ 227,204.55

Direct Operating Expenses:

Flying Operations 95,659.20

Fuel and Oil 309,921.09

Maintenance 224,431.20

Aircraft/Insurance/Taxes 165,000.00

Total Direct 795,011.49

Total Indirect 277,806.00

Total Operating Expenses 1,072,817.49

Operating Loss 845,612.94

Profit Element

(5% total oper exp) 53,640.87

Compensation Required 899,253.82

Compensation per PAX $ 199.83

Compensation per Departure $ 488.83

Representative Daily Schedule

Departure Arrival Stops

IRK @ 630 STL @ 730 n/s

STL @ 0900 IRK @ 1000 n/s

IRK @ 1100 STL @ 1200 n/s

STL @ 1345 IRK @ 1445 n/s

IRK @ 1500 STL @ 1600 n/s

STL @ 1800 IRK @ 1900 n/s

## Option 5

Kirksville, MO – Chicago, IL (3RT) – Caravan

Departures: 1,840

Block Hours: 920

Revenue Passenger Miles: 811,250

Available Seat Miles: 4,036,032

Operation Revenues:

Passenger: IRK-BRL-ORD 2,950 psgrs at $ 79.00 $ 233,050.00

Other Revenues $ 2,330.50

Total Operating Revenues: $ 235,380.50

Direct Operating Expenses:

Flying Operations 59,787.00

Fuel and Oil 208,049.56

Maintenance 140,269.50

Aircraft/Insurance/Taxes 165,000.00

Total Direct 573,106.06

Total Indirect 206,245.00

Total Operating Expenses 779,351.06

Operating Loss 543,970.56

Profit Element

(5% total oper exp) 38,967.55

Compensation Required 582,938.12

Compensation per PAX $ 197.61

Compensation per Departure $ 316.88

Representative Daily Schedule

Departure Arrival Stops

IRK @ 0600 ORD @ 0745 1

ORD @ 0815 IRK @ 1000 1

IRK @ 1230 ORD @ 1415 1

ORD @ 1530 IRK @ 1715 1

IRK @ 1745 ORD @ 1930 1

ORD @ 2000 IRK @ 2145 1